I believe the folk process is basically over, because the oral tradition is basically dead - killed by the ubiquity of broadcast music and recorded music.
Within the wider community perhaps - as you say, Pip, 'folk' is now largely the preserve of hobbyists rather than an integral part of our culture. But within that group of hobbyists the oral tradition is alive and well - hence the looks of surprise when some people learn that songs like 'Bring us a Barrel', 'Fields of Athenry' or 'Only Her Rivers Run Free' were written by real people within the past few decades. Some songsmiths - Keith Marsden and Dave Webber spring to mind - must sometimes have smiled rather ruefully at the way so much of their material has been absorbed so quickly into the 'anon.trad.' sphere through oral transmission.
Somehow, though, I can't see Seth Lakeman's 'The White Hare' being adopted, whatever the Radio 2 judges said!
Sorry, I'll get me coat...